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Brain in a Bubble
Brain in a Bubble
illusion of thinking

With WWDC on deck, Apple says “reasoning” AI models collapse with complexity

Apple tested state-of-the-art “chain of thought” models and found that they aren’t “reasoning,” but merely pattern matching, calling into question the direction the industry is taking.

Jon Keegan

Apple’s troubled AI rollout was plagued by a series of remarkable feature failures and product delays.

What was supposed to be the year of “Apple Intelligence” has failed to deliver an AI-enhanced Siri on par with voice assistants from competitors like Google, OpenAI, and Meta. This week, all eyes are on Apple as it holds its Worldwide Developers Conference (WWDC) to see what it’s planning to get back in the AI race.

But behind the scenes, researchers at Apple have been digging into the competition’s latest and greatest “reasoning” models to see how they respond to tricky challenges as they scale in complexity.

In a new paper, Apple’s researchers found that the leading state-of-the-art “chain of thought” models “face a complete accuracy collapse” when they dialed up the complexity of puzzle-based tests. The spectacular failures of the models led the researchers to question their “reasoning” label, calling it instead “the illusion of thinking.”

The suite of tests included puzzles like “Tower of Hanoi,” in which the player must stack a series of disks of various sizes from one post to another, one disk at a time, only moving the top disk, and always placing smaller disks on larger ones.

Screenshot from apple “Illusion of Thinking” paper
A figure from the “Illusion of Thinking” Apple paper showing models’ collapse in accuracy as the complexity is dialed up. (Source: Apple)

While the models could solve the simplest versions of the puzzles, they fell on their face once things got more complex. The research tested reasoning models DeepSeek-R1, OpenAI’s o3-mini, and Anthropic’s Claude 3.7 Sonnet Thinking.

Chain of “thought”

After hitting performance plateaus from the “more data, more compute” approach, the industry followed OpenAI’s o1 release and started to build “chain of thought” reasoning models, which showed their “thought” processes.

This technique did boost the performance of large language models to new levels, offering a promising new pathway out of what looked to be a computational dead end. While they required vastly higher computation resources and time, the approach seemed to be the way forward.

Apple’s research seems to show that rather than reasoning, these models are merely displaying sophisticated pattern matching.

Apple researchers also examined the “thought” processes behind each solution to the puzzle, to better understand exactly how the models approached solutions.

The fact of the matter is that very little is known about how these recent models actually work. It remains to be seen if Apple has been cooking up an alternate approach, but reports indicate an AI-enhanced Siri isn’t likely to make a debut at this week’s WWDC.

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Google’s YouTube to launch cheaper streaming packages that could potentially compete with Netflix

Google’s YouTube announced today that it will launch 10 genre-specific packages early next year that will cost less than its existing $82.99-per-month YouTube TV.

While the company didn’t specify how much these new packages will cost, they’re expected to come in well under the price of the full YouTube TV bundle. That could put its price point in line with other major streaming services like those offered by Apple, Disney, and Netflix. YouTube already commands the largest share of TV viewership in the US, and lower-priced subscription options could widen its lead even further.

That’s unwelcome news for other streamers, particularly Netflix, which has faced investor pressure since reports emerged about its acquisition of Warner Bros. Discovery.

Paramount has since launched a hostile counterbid, but Netflix’s stock continues to struggle. Shares are down nearly 2% today.

While the company didn’t specify how much these new packages will cost, they’re expected to come in well under the price of the full YouTube TV bundle. That could put its price point in line with other major streaming services like those offered by Apple, Disney, and Netflix. YouTube already commands the largest share of TV viewership in the US, and lower-priced subscription options could widen its lead even further.

That’s unwelcome news for other streamers, particularly Netflix, which has faced investor pressure since reports emerged about its acquisition of Warner Bros. Discovery.

Paramount has since launched a hostile counterbid, but Netflix’s stock continues to struggle. Shares are down nearly 2% today.

tech

Elon Musk tells Google executive that “Waymo never really had a chance against Tesla”

Not one for modesty, Tesla CEO Elon Musk responded to a post on X by Jeff Dean, chief scientist at Google DeepMind, by saying, “Waymo never really had a chance against Tesla.” He added, “This will be obvious in hindsight.”

Dean had noted that Waymo vehicles have driven riders 96 million miles autonomously without a driver, alluding to the fact that Tesla’s Robotaxi service still requires safety operators in the front seat in both its locations.

Tesla currently operates about 30 Robotaxi vehicles in Austin and 120 in the Bay Area, while Waymo had more than 2,500 across the country (at least 200 in Austin and 1,000 in the Bay Area) as of late November. Musk has said Tesla would remove safety monitors in Austin and that it would scale to 500 vehicles there and 1,000 in the Bay Area by year-end, but the clock is ticking on reaching those goals.

Tesla, of course, is more focused on the 6.7 billion miles its vehicles have driven with Full Self-Driving tech, driver assistance software that requires a driver be present and paying attention. The idea is that, with a software update, millions of Teslas could be turned into potential robotaxis.

Read more on Tesla and Waymo’s battle for driverless supremacy here.

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Rani Molla

Amazon announces major AI investment in India a day after Microsoft

Amazon said today that it plans to invest more than $35 billion in India by 2030, adding to the nearly $40 billion it has invested in the country so far. The latest investment is focused on AI-driven digitization, boosting exports, and expanding employment, the company said.

The news comes just after Microsoft revealed it would spend $17.5 billion on the subcontinent from 2026 to 2029 to accelerate the nation’s AI infrastructure.

India has become a strategic battleground for global tech firms thanks to its rapidly growing digital economy, vast developer base, and government support for AI infrastructure. Together, the back-to-back announcements underscore how aggressively both cloud giants are ramping up their global AI spending as they race to build — and profit from — the next generation of computing.

India has become a strategic battleground for global tech firms thanks to its rapidly growing digital economy, vast developer base, and government support for AI infrastructure. Together, the back-to-back announcements underscore how aggressively both cloud giants are ramping up their global AI spending as they race to build — and profit from — the next generation of computing.

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